Despite Economic Jitters, Ethernet Switch Market Continued to Grow Year-on-Year, According to Dell'Oro Group

Modular Platforms Struggled, as Fixed Platforms Surged

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Jun 03, 2013, 09:00 ET

REDWOOD CITY, Calif., June 3, 2013 /PRNewswire/ -- According to a recent report by Dell'Oro Group, the trusted source for information about the telecommunications and networking industries, the Layer 2-3 Ethernet Switch market reached $5 Billion in 1Q13 with continued revenue growth from Fixed platforms, especially those in the data center.

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"Despite economic headwinds and relatively weak earnings from many technology companies in 1Q13, overall market revenue came in as we forecast at slightly more that $5 Billion. It is important to remember that 1Q is typically a seasonally weak quarter and additional headwinds from Europe and the new tax regulations in the United States were going to cause a sharp sequential decline," said Alan Weckel, Vice President at Dell'Oro Group. "We see the two strongest areas of revenue growth in 2013 remaining the same as 2012—first, enterprise users consolidating data centers and migrating from 1 GE to 10 GE. Second, Cloud providers' insatiable appetite for capacity spurs significant demand for network equipment. We are also watching for a significant uptick in spend by the U.S. government which would result in upside to our 2013 projections," stated Weckel.

The report shows that Dell, IBM, and Juniper all achieved record 1Q revenue levels while just as many vendors' revenue declined on a year-over-year basis. The report also looks over the next twelve months at how and when new 40 GE and 100 GE products will impact the market.

About the Report
The Dell'Oro Group Ethernet Switch Quarterly Report offers a complete overview of the Ethernet Switch industry with tables covering manufacturers' revenue, average selling prices, and port/unit shipments (by speed Fast Ethernet, Gigabit Ethernet, 10 Gigabit Ethernet, 40 Gigabit Ethernet, 100 Gigabit Ethernet) for Layers 2-3 (both managed and unmanaged). To purchase this report, please contact Julie Learmond-Criqui, call +1.650.622.9400 x222 or email [email protected] to purchase.

About Dell'Oro Group
As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enable component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, visit www.DellOro.com.

SOURCE Dell'Oro Group